Gold Price Weaker On More Profit Taking And Bounces In Stocks, Dollar

New York (Mar 29)  Gold prices ended the U.S. day session slightly lower Wednesday. Gold and silver markets saw normal, mild corrective pullbacks on the charts following recent good gains that saw gold hit a four-week high and silver hit a three-week high this week. A rebounding U.S. stock market and U.S. dollar index at mid-week are also negatives for the precious metals markets. April Comex gold was last down $1.80 an ounce at $1,253.80. May Comex silver was last down $0.002 at $18.25 an ounce.

There were no major, markets-moving news developments Wednesday. The world marketplace is eyeing the U.S. stock indexes. Traders and investors are wondering if recent losses in stock markets mean the end of the record-setting “Trump rally” that had been in place since the U.S. president was elected in November. Solid rebounds in the U.S. stock indexes Wednesday favored the camp that believes the recent selling pressure in stocks was just a normal downside correction in a bull market that still has legs. How the U.S. stock indexes close on Friday—near the weekly highs or the weekly lows—will provide clues on the future health of the very mature bull market in equities. And the future direction of the U.S. stock market will have a big influence on many other markets, including the precious metals.

The key outside markets on Wednesday saw the U.S. dollar index higher and rebounding from this week’s 3.5-month low. The greenback bears still have the overall near-term technical advantage as prices are still in a downtrend on the daily bar chart. Meantime, Nymex crude oil prices were higher on short covering, but are still trading below $50.00 a barrel. The crude oil bears remain in near-term technical control.

Source: KitcoNews